Government revamps selection norm for non-official directors in PSBs

New Delhi: To ensure efficient management of PSU banks and insurance companies, the government has revamped the procedure for appointment of non-official directors and will invite online applications from candidates.

As per the new norms, a high-level search committee would go through the applications and recommend names to the Government for approval, the Finance Ministry said in a statement.

"Non-official Directors (NoDs) could be appointed for maximum six years or two terms," it said.

The Finance Ministry has set up a web portal where interested persons can apply online with all the relevant details. Applicants would also have access to status of their applications on the portal.

The changes in the appointment procedure would "professionalise the Boards of these banks and further provide required skill sets to improve the quality of deliberations on the Boards of these banks leading to efficient management of these banks and further leading to better profitability ratios".

As per the norms, the applicant would need to have at least a graduation degree, should be less than 67 years of age and have 20 years of work experience.

Eminent persons with special academic training or practical experience in the fields of agriculture, rural economy, banking, cooperation, economics, business management, among others would be considered for the post.

Also retired senior Government officials, academicians, directors of premier Management, Banking Institutes, professors with 20 years experience would also be considered. Chartered Accountants with 20 years experience would also be considered, the statement added.